Welcome to another real estate news recap, from Realestate.com.kh – your leader in property information! Keep up to date with market changes, and be an investor with FORESIGHT!Cambodia and Russia Partnership:In a discussion May 16 with Russian Prime Minister Dmitry Medvedev, Cambodian Prime Minister Hun Sen proposed converting a portion of the $1.5 billion that Cambodia owes to Russia into economic and investment cooperation opportunities. This was on his recent visit to Russia. While there has been no clear statement of how the two countries will go about this issue, Medvedev and Hun Sen continued to sign an agreement that put importance on trade, investments and defense. This, according to the prime ministers, will strengthen and highlight the relationship of the two countries which already spans decades in history.The Rise of Sihanoukville:While Prime Minister Hun Sen discussed investment opportunities and economic alliances in Russia, the Cambodian Minister of Tourism, Thong Khon, and the Minister of Land Management, Urban Planning, and Construction, Chea Sophara, had their own discussions about portioning Sihanoukville into three segments or sections to make it more manageable. The three sections will be characterized as luxury beaches with the private sector, public beaches with the private sector and public entertainment beaches. How this affects zoning and property allocations remains to be seen.The Division of Sihanoukville:The segmentation of Sihanoukville seemed like a fair agreement for everyone. After all, this will allow authorities to easily manage local policies and accesses. Everything seems fair, of course, until someone says it isn’t. This is the case with 14 vendors whose stalls and businesses were demolished in the Ochheuteal beach on April 9. This was after an eviction notice was given to them on March 13. It was reported that there were around 30 stalls that were dismantled to make way for infrastructure and a garden. Some of the vendors had agreed to the $3,500 compensation, but there are still a few who refuse to come to terms with this new development. The evicted vendors had already filed a complaint with the Interior Ministry last Tuesday. As a result of this, Secretary-General Khieu Sopheak has tried communicating with Preah Sihanouk Provincial Governor Yun Min to see if this issue can be resolved peacefully.A First for Pursat Province:Since the discovery of an investment potential for a development in Pursat Province, local developer – Green Trade – is planning to build a mall and flat along National Road 5 at the Lor Lork Sor district. This road bears much value as the connector of Bangkok, Ho Chi Minh and Phnom Penh. According to Okhna Phou Puy, the head of the Cambodian Rice Millers Association and also the director of Green Trade, the development will also build a farmer’s market and compound flats. Construction is expected to start by the year 2017 where they hope it will meet the New Year with a bang.Chroy Changvar Land Titling:With a welcoming embrace of doubt, local groups for land rights had warmed up to the announcement of District Governor Klang Huot that titling will start this week for residents affected by the Overseas Cambodia Investment Corporation (OCIC) development which is valued at around $1.6 million. Klang Huot adds that officials coming from the Ministry of Land Management, Urban Planning and Construction will arrive to also inspect the communes of Prek Tasek and Prek Leap. Residents were advised to ready their land documentations and plot their lands but have yet to receive details about how much the compensation will be. Officials have yet to confirm the final terms for the said titling.EEU Free Trade Zone: In a statement made by Russian Deputy Foreign Minister Igor Morgulov at the Russia-ASEAN Summit held in Sochi, he reveals that a number of countries in Southeast Asia have expressed the will to create a free trade zone agreement with the Eurasian Economic Union so as to establish healthier business ties and investment opportunities amongst them. These countries include Cambodia, Thailand, Indonesia and Singapore. It’s still not clear whether the EEU is open to accepting this type of partnership with the above-mentioned countries. Until this is confirmed, the free trade zone remains to be a possibility and a topic of interest.

With the decline of investment opportunities and political stability in neighboring countries and traditional hubs of international real estate investment, more and more foreign investors are closing in on the Kingdom of Cambodia and the Cambodian real estate sector. As this vehicle for growth continues, it pays to step back and consider the major victories and potential pitfalls of the Cambodian real estate sector as a whole. Despite beginning from a highly distressed market around 25 years ago, Cambodia has slowly moved through the ranks and emerged as one of Asia’s fastest growing economies. One reason for this is because of revisions to government policy that have made business transactions much easier, convenient and increasingly transparent. This isn’t only profitable for the international market, but also for the local developers and consultancies who have been working to make the construction and Cambodian real estate sector a major contributor to macro-growth of the Cambodian economy.The government’s efforts to assist this sector to thrive has resulted in increased gross domestic product - where in 2015, the World Bank declared that the country’s GDP rose from roughly $16 billion to $18 billion; with construction as the overriding driver behind this growth. The Asian Development Outlook by ADB also mentioned that “Cambodian economy remains strong, despite a slight growth for 2015 and 2016 due to economic disturbances, with a forecast at 7 percent GDP growth in 2015 and 7.2 percent in 2016.” In his talk at the Real Estate Market & Outlook Conference 2016 (REMOC), Hoem Seiha, the director of research for VTrust Appraisal, explains that this may be one of the contributing factors to the continuous progression of population incomes; which grew from $102 per capita in 2009 to $136 per capita in 2013. This is confirmed through a research report made by the National Institute of Statistics. This has led to a rising of the middle class as well, mentioned Hoem, increasing consumer spending across the board.As 2016 rolls on, Hoem also believes that commercial properties are now reaping the fruits of their construction cost and labor as new commercial developments are seeing more and more income from a larger share of the population. Some of these developments include the Sovanna Mall, Canadia Tower, Phnom Penh Tower, Vattanac Capital Tower and the AEON shopping mall. To confirm this point, CBRE Cambodia has projected that about 300,000sqm of net leasable retail areas will be available for commercial occupation by the closing of 2016.Shop houses and villas within “borey” land projects still remain the preferred option for Cambodian buyers; who see in-house financing deals from developers and staggered payment terms as a key advantage when looking for a new family home. Shophouse flats which have multiple floors, one of which opens to the street, also remain a popular choice for local investors and buyers, such as newly-wed couples, because these can be used for both residential and business opportunities. Cambodian’s generally want an opportunity to own their own business, even on a small scale - and these types of properties allow for this. There is, however, a slight change of pace for the Cambodian real estate sector as condominium sales have slowed and may continue to slow, notes Hoem. According to Century 21 Cambodia, the Sales-to-Stock ratio in the condo sector took a knock from 25 percent to 7 percent in 2015 to 2016 alone. But it may be too early to tell if this will be the case for the whole year or not. Hoem states that this effect may be due to the fact that the condominium market has an excessive supply given local uptake, and a demand that has become predominantly dependent on foreign buyers. This is due to the average price per unit being out of reach for most locals, a lack of appropriate financing options for local needs and a lack of demand for non-landed properties according to domestic Cambodian tastes and preferences. As Cambodia reaches for its full potential, there are still a few threats that it has to acknowledge and learn from. Learning from these indicators is necessary for Cambodia and the Cambodian real estate sector to maintain economic progress and a competitive edge. One thing is for sure though – its future remains exciting!

Talks of growth in Cambodia has made it a hot-spot for foreign property investment in the last few years, and the nation is receiving worldwide interest from property developers and investors. Known for its beautiful culture, awe-inspiring beaches, mystical forests and rivers, and enormous temple complexes, it’s easy to understand why everyone wants a piece of it. But more than the aesthetic beauty of the country, there are a few other things that give Cambodia its property investment charm:U.S. Dollar Based Investment:Cambodia has used the U.S. dollar as one of its main currencies for a long time now, over 20 years in fact. The government explains that the US$ provides stability in the market with ease of conversion from Riel (the local currency). This makes transactions less complicated for investors and offers a currency option that faces very few transfer restrictions around the world. There are no restrictions for exchanging US$, making it a highly-free flowing currency, and a global currency showing superior stability to all others over recent years. Transferring funds from abroad into Cambodia is very easy and able to be done with very little process. Meanwhile, when you resell your property in Cambodia, you can transfer your money outside of the country very easily, simply by showing your receipt of sale. Many regional banks that have opened in Cambodia also offer ample support for foreign investors who wish to enter the growing real estate market of Cambodia.Early Development Phase:Even though the Cambodian real estate industry has come a long way in the preceding years, there is still a large chunk of undeveloped land and untapped districts able to be utilized by investors and developers from overseas. Most developments in recent years have focused on the capital Phnom Penh, the beach town of Sihanoukville and the tourist destination Siem Reap; but Cambodia still has huge potential for growth in other regions, and investors are welcome to join in when they bring FDI, infrastructural support and experience.Impressive Growth in GDP:Research from a large variety of sources has demonstrated a consistent average GDP growth of 7 to 7.5 percent in the last 5 years for Cambodia. This has allowed the Kingdom to rank 21st in this measure of growth worldwide, and the 1st in the Southeast Asian region – further solidifying its integrity for potential growth into the future. While the bulk of this GDP has traditionally come from garment manufacturing, the economy is entering a phase of diversification and value-adding upskilling which is set to take the economy to a new level of sustainability, for both investors and Cambodian nationals. In fact, last year construction was the largest engine of GDP growth in Cambodia - a testament to the emergence of a booming real estate industry. Appreciation gains for Cambodian real estate are much more attractive than other established markets thanks to the nation’s consistently fast growing economy and GDP. Buyers of property in Phnom Penh, for instance, can safely expect 6 to 8 percent appreciation each year.Secure Assets:Development in policies regarding strata titles, whereby foreign investors can purchase co-ownership in a property as a workaround of the Cambodian State Constitution, has proven to be a profitable decision for its economy and a key for foreigners looking at entering the real estate market. Long term lease policies have likewise allowed huge opportunities for international investors to enter the market and these have provided security sufficient to encourage more and more inward investment.Strategic Trade Location and Logistical Integration:Lying between equally competitive and growing neighbor countries, Cambodia is located alongside Thailand and Vietnam. Meanwhile, the economy sits between the two giants of China and India, with consistently growing partnerships with both. It has also joined ASEAN and has established highly beneficial trade agreements with Europe, North America and Australasia. Infrastructure and trade services have been one of the things Cambodia has pushed very hard on in recent years. That is why it has continued to build better roads, railways, bridges and deep sea ports. It has also continued to develop its international flight connections across the country so as to integrate fast transport and travel for investors. As part of China’s “One Belt One Road” policy, the country will also soon see interconnecting railways across the Asian region and into Europe.Political Stability: The fact that the Kingdom has had one prime minister for almost a quarter century means that there has been, and will continue to be, consistency and continuity in its highly investor friendly policies and political practice. In fact, the current prime minister represents the longest-ruling non-royal leader in South East Asia. Out of the ASEAN nations, Cambodia has demonstrated itself to be within the top 3 in regards to political stability. Retirees' Mecca:Cambodia boasts a low cost and high-standard of living for retirees; offering a great lifestyle at a fraction of what it would normally cost in other places in the region, and tiny compared to highly developed economies. This is what makes it a perfect retirement spot for foreigners. This is becoming increasingly so as the nation's logistical connections, health system, schools, visa support systems and infrastructure grows in leaps and bounds. People:According to the Population Division of the United Nations’ Department of Economic and Social Affairs, Cambodia has about 15,700,000 people, and these people are the Kingdom’s greatest asset in terms of growth. They are not merely spectators to growth; they are the drivers of economic progress - given that 70% of this population is under 30 years of age! Aside from that, the people of Cambodia are also naturally friendly and welcoming, and most understand the value of partnering with internationals for benefits in terms of sharing worldly experience, education and economic benefits.   These are just some of the things that have given Cambodia its charm for investors in the last decade. And as more and more people see the great accomplishments in its past developments and its full potential beginning to emerge, it will soon grow even more attractive for property investment opportunities, whether at a personal or at a business scale. Nevertheless, for the most appreciation, NOW is the time to consider investing in Cambodian real estate! FIND A PROPERTY NOW!

The Global Strategic Business Development (GSBD) Team at Century 21 Cambodia will soon embark on a month-long “Global Strategic Business Development Tour” whereby they will visit China, Hong Kong, Macau, Taiwan, Thailand, Singapore, Japan, Malaysia and Indonesia, promoting Real Estate investment opportunities in Cambodia. The tour team will consist of Mr Kuy Vat, Chairman/CEO Century21 Cambodia; Mr Seraj Sutton, Director of Global Strategic Business Development at Century21 Cambodia; and Mr SamAth Him Sprung, Director of Global Strategic Business Development at Century21 Cambodia. Century21 Cambodia, through their tour series, wish to be a catalyst in spotlighting Cambodia in the world market for property investment; and will be approaching major players in key markets in order to combine their regional expertise and to expose the Cambodia market to the huge Century21 Global Network. Even while Cambodia’s construction and economic boom continues, many perceptions of the wealth of the country and the potential for returns on investment are still being overlooked in major global markets, despite nearly two decades of swift economic growth. While the Century21 Overseas tour seeks to identify investment opportunities abroad, it also seeks to alter this mindset and funnel investment capital back to the Cambodian property sector. With up to 80 percent of Cambodian new development projects being bought by International buyers, property developers in Cambodia must educate the global market on the benefits of investing in the Kingdom. Through this tour, Century21 Cambodia is pioneering this mission, and a mission that will bring benefits not only to Century21 offices in Cambodia - but the entire property market sector in Cambodia! Mr Seraj Sutton, Director of Global Strategic Business Development at Century21 Cambodia, said that, “We at Century21 Cambodia are very excited and feel quite positive about the way real estate market in Cambodia is developing and are proud to present Cambodia to the world.” The month long expedition is to promote Cambodian-based property investment opportunities to the International investors and also to identify overseas investment opportunities for Cambodian-based property investors; The investment tour will provide a unique opportunity for personal interaction to close the gap between the investor and the opportunity. In each of the 9 countries they will visit in phase one of the Business Development Tour, the Century21 Cambodia team will harness the Century21 Global Family Network in each of these countries, tapping each country franchises’ network of investors, property owners and sellers. With 7,100 offices, across 78 countries and over 100,000 Professional sales agents, the Century21 Global Family is well positioned to promote new real estate developments in Cambodia to surrounding countries. After the Century21 Cambodia Asian Business Development Tour is complete, they will then look to wider global markets to share information about Cambodian property investment, namely they will visit Australia, USA, Belgium and France.

CB Richard Ellis (Cambodia) Co., Ltd. (CBRE Cambodia), first came into existence in 1993 and is now the world’s largest commercial real estate services and investment firm.CBRE has an employee count of 70,000 in 400 offices worldwide. Foreign nationals from the UK work within each subsidiary company and pass on international knowledge to local staff in offices across the globe.Attributing to its strong market growth and expansion, CBRE Cambodia launched in Phnom Penh, Cambodia, in 2008.Equipped with more than two decades of experience in the real estate industry, CBRE Cambodia has provided assistance in all different aspects of the real estate industry, all over the Kingdom. With the help of its specially trained experts, they offer services like execution for property sales and leasing, strategic advice and consultation, corporate property sales and management, full facilities and project management, all types of appraisals and valuation, mortgage banking, in-depth research and consultancy.CBRE Cambodia also have experience in a lot of types of properties and transactions, including villas, boreys, condominiums, apartments, shop houses, office leasing, industrial space, hotels, resort, land, investment, retails for rent and retails for sale.Senior Associate Director, Sothida Ann, says that, “CBRE does not directly invest in or acquire projects in the market; we are a service provider using our experience and regional support to provide our clients with the soundest advice when they are looking to invest in the market. One of our main areas of work is in research to advise developers and investors on whether it is the right time to enter the market, often performing feasibility studies for the client to see if their project is viable.”With its goals focused on setting a strong regional presence and widely respected service record, CBRE Cambodia have attracted, and are still attracting, investors from all over the globe to the Kingdom.CBRE Cambodia represents one of the most trusted and reliable firms in the Kingdom - not just because of its years of experience globally; but because of what they have achieved in the two decades that they have operated.As a testament to its success, CBRE Cambodia has been involved with key local projects such as the Australian Embassy, Phnom Penh Tower, Hongkong Land’s new development projects, Vattanac Capital Tower and Song Saa Island Resort, to name just a few.CBRE Cambodia leads the pack; because, unlike its competitors that offer only two-dimensional assistance packages for potential owners and investors, CBRE Cambodia has made certain that it can offer 360 degree assistance from step one - the time that you would need the most guidance and education - right through to final completion.CBRE Cambodia’s triumph is not only in acquiring as many investors as they can to grow their business, but in the quality of their services: an irreplaceable tool for investors and developers to find success in their current and future ventures.VIEW CBRE's BEST PROPERTIES NOW

Formed in 2015 as the holding company of Kingsland Malaysia and Kingsland Cambodia, Kingsland Global (ASX: KLO) specialises in commercial and hospitality property development across Asia.  Tracing its origins from Kingsland Development, which has over 37 years of experience in the property development scene in Singapore, Kingsland Global is excited to extend its property development expertise to more territories around the globe - none less than Cambodia. Entering a joint venture with a Cambodian partner, Kingsland Global is proud to announce its entry into the Cambodian property market. “We are extremely pleased to partner with Kingsland Global in this joint venture which we believe will lead to many dynamic projects now and into the future. Bringing their own brand of professionalism and strict adherence to safety standards, Kingsland Global’s values and culture – such as their daily toolbox meeting that kicks off every working day with a stringent safety check on site - will help to raise market standards across the board and greatly add value to the local community,” as said Mr. Pheap Horng, Chairman, CamTrip Investment Co. Ltd., Kingsland's Cambodian JV partner. Jeremiah Lee, Managing Director of Kingsland Global, stated that,“Kingsland Global is particularly excited by the possibilities and opportunities that the Cambodian property market opens to us. With its fast-growing economy and promising prospects, we are confident of harnessing the benefits of Cambodia’s favourable investment climate to deliver high quality commercial and hospitality development projects in the local property scene. We believe our commitment to quality and excellence will allow us to capitalise on the limitless potential the Cambodian property market offers, especially at this point of time when it is still entering its early stages of development.” Infusing value and lifestyle in all their projects, Kingsland Global has demonstrated its standard of excellence through quality projects across Asia. Kingsland Global is currently embarking on more exciting commercial projects that will allow the company to share their expertise and dedication to property development with all partners and clients. Ensuring trust and reliability remain the cornerstones of their corporate integrity, Kingsland Global strives to be Asia’s leading integrated property developer by bringing these values into the Cambodian market and every region that they expand their expertise to. Kingsland Global is proud to announce some upcoming projects in Phnom Penh. To be operated by the acclaimed hotel operator, Wangz Singapore, 228 Oknha Peich is a 13-storey boutique hotel located in Khan Daun Penh which houses many historical monuments. Slated to be completed in the 2nd quarter of 2017, this stylish hotel is equipped with multiple facilities and looks to provide tourists and business travelers with a luxurious home away from home. Another upcoming iconic development, One18 Residences is a luxurious 24-storey apartment providing quality living and hotel-like amenities right in the heart of Phnom Penh city. Look forward to a first-class residential experience like none other when the project is completed soon. For more info on Kingsland in Cambodia, please get in touch with Kingsland (KH) Development Co Ltd, #34, Street 200, Sangkat Boeung Raing, Khan Duan Penh, Phnom Penh, Cambodia (Tel) +855 77 3399 20, (Fax) +855 23 2217 07/08 or Kingsland Global Headquarters (Singapore); (Tel) +65 6362 8998, (Fax) +65 6363 7031; or email info@kingslandglobal.sg

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Governor Socheatvong confirmed that the Phnom Penh municipality will install 600 security cameras across the capital over the coming 6 months. In addition, more than 69 hectares of gardens and trees will be entrusted to a private company, removing the responsibility of matainance from City Hall. Phnom Penh Governor Socheatvong, through Facebook, pointed out that, in addition, the lights illuminating these public areas (more than 11,000 bulbs) will be switch to LED lights, and responsibility over this task and replacing all lights will likewise be entrusted to the private company.

Over the last few years, the Cambodian real estate market, and in particular Phnom Penh, has seen huge growth.In 2015 alone, overall property prices in Phnom Penh rose to an amazing 26.2 per cent. This is according to a report released by global property consultancy, Knight Frank.It’s an impressive feat, considering that it is higher growth than any other city in the Asia Pacific region. Phnom Penh came in just a little bit behind the success of Tokyo in terms of rise in land values within a greater region. But properties like condominiums, despite sales, remain one of the most misunderstood property types in the Kingdom. This is echoed by a statement made by Chrek Soknim at the first annual Real Estate Market & Outlook Conference 2016 (REMOC2016).Soknim explains that the “condominium isn’t a nascent market anymore in Phnom Penh. It’s been here now for over eight years, yet there are still many things for developers, buyers and key players to carefully learn in order to get quality market insights, and shift their focus to the right paths forward for this real estate subsector.” One such factor that developers should consider is the cultural and generational gap of Cambodian society, especially if you are entering its real estate market from an outside perspective. Cambodians prefer to live with their extended families in residential landed homes.This makes condominiums more of a tough sell in the Cambodian context, Soknim laments. This is a sentiment that In Sitha, Business Development Director at VTrust Appraisal, also shared, stating that, “developers must conduct thorough market surveys before beginning any project in Cambodia if they want to guarantee that there will in fact be sufficient demand for their end real estate product.”What works in the property developer’s home market, will not automatically work in the Cambodian context, it seems. Though Soknim, in his presentation at the REMOC2016, is optimistic as he explains that the younger generation of Cambodians are now more open and understanding of why condos make for better investments than residential homes: "So far, our own people, they don't want to live in condos." He continues to say, "but the young generation, mostly the people who go to foreign countries, they are aware and understand about the benefit of condos."The second factor developers can monitor is the Kingdom’s general economy where banks take collateral that charges 100 per cent of the property value. Home loans for relatively expensive condo units, therefore, fall outside the reach of many Khmer buyers. The same applies to high starting deposit rates of 30 percent and upwards. This is leading to an increasing trend of developers working in close partnership with local and international banks to provide realistic payment plans and loan criteria, more and more tailored to the local market requirements.A third factor to consider is the ratio between local and international interest in these types of properties, especially with luxury condominiums. Soknim explains that what developers should come to terms with is the fact that 80 per cent of the condominium developments are usually purchased by foreign investors and only around 20 per cent are purchased by the locals.This is why buildings can have a thousand units yet at the same time seem empty. It is important to note that based on legislation passed several years ago, the strata title law of 2010, foreigners can own up to 70% of the property as long as that ownership does not extend to the ground floor. This is good news for foreign investors and local businesses who can utilize this to their advantage by buying property in Cambodia, and moving businesses into the US-dollar based economy. As Fitzgerald explains, “given the political instability [in thailand for example], the worry of the [Thai] currency; is meaning a lot of the medium to lower funds and foreign investment funds are actually moving their headquarters from Bangkok to Phnom Penh.”It is also important to note though that there are sometimes instances where units are not purchased with intent of occupancy by pure investors. These are purchases made for appreciation benefits or as means to safeguard finances.While the Kingdom of Cambodia still has a lot of policies to polish and lessons to learn, these indicators, along with the rising wealth of statistics and data brought about by Phnom Penh’s globalization efforts, can serve as an analytical tools for potential investors and developers who wish to delve into the real estate and condominium industry.Want to know more about Cambodia's property market? Search through our news section for more updates!

The chief of Siem Reap’s Province’s department of land management, urban planning, construction and cadaster, Mr Se Samut, has been replaced by Mr Hy Say, previously the deputy chief of the ministry.  Se Semut was moved from the Siem Reap Department of Land to a new position at the Ministry of Land Management. Spokesman of the Land Management Ministry, Chiem Sophal Makara, noted to media that the decision was, “made for the purpose of strengthening the institution.” Minister of Land Management, Mr Chea Sophara, also publically announced the replacement via his personal Facebook, supporting the decision and asking all officials to offer their support and respect to the new minister that is now accepting the role. Chea Sophara asked, “Please brothers and sisters in Siem Reap province, instruct and cooperate by regarding

With the Cambodia economy growing more and more each year, eyes from the international community are being pulled towards the Cambodian real estate market - and for good reasons. One of these reasons is recent legislation that allow foreign-ownership of strata titled office space. But what exactly is a strata title?  Strata refers to apartments being on multiple or different levels of the same building complex. Therefore, the strata title is designed and specifically drafted for apartment blocks or buildings with multiple levels - and co-ownership rights within these buildings. This concept originated in New South Wales, Australia, but later gained popularity in Cambodia after the “Law on Foreign Ownership” was introduced back in May of 2010. This law paved the way for economic growth as it gave investors an ability to penetrate the local market and, likewise, diversify it. Up until a few years ago, there were difficulties doing that for non-Cambodian nationals. Since the legislation, the Phnom Penh skyline has grown beyond recognition as property developers have identified the opportunity to bring foreign investors into the Cambodian market via strata title. Before the advent of strata titles, property owners were now allowed to divide their buildings into multiple private properties which they could sell separately with freehold ownership rights (hard titles). But now, post 2010, foreign investors are free to own up to 70% of these properties as co-owners, provided that they only buy private spaces above the first floor. Slowly, these titles expanded beyond just residential buildings and begun to cater to the international demand for office space in Phnom Penh - which is fast becoming an ASEAN business hub. For investors foreseeing a potential oversupply of condo in the capital city, buying office space seems a less risky alternative given Cambodia’s exponential economic growth. As James Padden, Commercial Agency Manager of CBRE Cambodia, puts it when he spoke at the first annual Real Estate Market & Outlook Conference 2016 (REMOC2016), “If we look at the Phnom Penh market, I think it's important to consider the context of what causes demand for office space. So, essentially, it's driven by commerce, trade and economic growth. Without trade and business growth, there's no need for office space.” He continues to say that Phnom Penh is particularly strong in that regard. Padden offers that, “From 2010 to 2015, we saw imports grow from 6.7 billion dollars to 11.5 billion - which is a 70 percent increase. Meanwhile, exports grew from 6 to 8 billion dollars which is a 33 percent increase.” Padden also mentioned that in terms of GDP, there was an increase by 7 percent each year and the GDP per capita appreciated from $879 in 2011 to $1,325 in 2016, an incredible 50% increase in a span of only five years. As proof of a growing economy and a successful real estate industry, there are now a total of 689 condominium units announced during the fourth quarter of 2015 alone. This brings in the number of off-plan condominiums launched over the course of 2015 to a total of 7,014. Yet - on top of this - as of 2015, there are also now 5 strata-title office developments in Phnom Penh up for sale to local and international commercial property investors. As the trend grows and furthers into its development, strata-titled office spaces will account for about 25% of total office stock by 2020 - according to CBRE’s research. A key benefit of the increase in strata titled office space and residential real estate in Cambodia is the practicality of the new legislation and the amount of time it will save for buyers and sellers transferring the actual titles to new owners upon the completion of new development projects. The process is relatively simple and, at the completion of this process, end buyers have full freehold property ownership rights over that space. Strata titled office space will also allow business entities to conveniently own the properties that are part of their business expansion infrastructure in the Kingdom, which offers superior control and legal protection for their business’ assets here. It is legislation like this that offers international firms the confidence they need to take their first steps into the Khmer market. As more and more strata-titled properties enter the Cambodian real estate market, both strata titled office space and residential units, international investors can see a smooth, safe and cost efficient  vehicle available to venture and expand into Cambodian territory.

Realestate.com.kh is proud to be announced as Official Media Partner for the 2016 South East Asia Property Awards. Returning for a successful sixth year, the South East Asia Property Awards 2016 is the biggest, most prestigious and most recognised industry awards in the entire region.  Organised by PropertyGuru, Asia’s leading online property portal group, the programme serves as the grand finale for the ASEAN strand of the 11-year-old Asia Property Awards series, with the top and emerging names in real estate gathering on 23-24 November at the prestigious Shangri-La Hotel Singapore. Last year’s biggest winners included Far East Organization and UOL Group from Singapore, and Front Concept group from Malaysia, while UOL’s deputy group CEO Liam Wee Sin was awarded the coveted Singapore’s Real Estate Personality of the Year accolade. The event is also a tremendous networking opportunity for real estate professionals who would like to meet the industry leaders who are redefining the property landscape. Don’t miss this! As stated by Director of Realestate.com.kh, Mr Tom O'Sullivan, about the media partnership: "In early 2016, Realestate.com.kh created a strategic relationship with the PropertyGuru Group that allows Realestate.com.kh and our clients to leverage off the powerful network of property portals, events and related media in the ASEAN region; including PG Singapore, PG Malaysia, DD Thailand and Indonesia. The South East Asia Property Awards brings together leaders from across the region, including those from our market: the extremely fast-developing Cambodia. Partnering with the SEA Property Awards allows Realestate.com.kh and our clients to bring Cambodian property to the world stage, and of course to network and learn from the region's industry leaders."WANT TO FIND OUT MORE?

CBRE's Phnom Penh Q1 2016 MarketView has just been released! Chris Hobden, Manager of Research, Consulting & Valuation Services at CBRE Cambodia said that, “The Phnom Penh property market witnessed a significant increase in development activity over the first quarter, with investment in construction and residential project launches up 267% and 61.6%, year-on-year, respectively. Land prices appreciated by an average of 4.8% over the first quarter across Phnom Penh’s six principal districts. Notably, prices in Chroy Chang Va district rose by 8.8%, bringing its total land price appreciation to 208% since Q1 2010, driven by a combination of infrastructure improvements, local development activity and the continued expansion of the city’s core.”In summary:Land prices across principal districts appreciated by an average of 4.8% over the first quarter, with land prices in Chroy Chang Va and 7 Makara districts rising by 8.8% and 8.3% Q-o-Q, respectively.A total of 4,158 condominium units, across 8 projects, announced over Q1, representing a Y-o-Y increase of 61.6%.Average sales and rental prices broadly appreciated over Q1, with the exception of shopping mall rents, due to challenges faced by ageing retail stock in the context of upcoming supply.Limited new supply came on-stream over Q1, with 3 office buildings collectively adding 17,260 sq.m of leasable space to modern Phnom Penh stock.US$1.65bn invested in construction over Q1, compared to US$448m in Q1 2015, representing a significant Y-o-Y increase of 267%.Find out more: Download the full report!

The process of choosing home loans in Cambodia and a lender can be quite complicated, but if you tackle it in stages you can avoid disappointment, frustration and wasted time. Realestate.com.kh is here to help.How do you choose a reputable lender in Cambodia? With more than 35 commercial banks operating in the Kingdom, it can be overwhelming to make the right decision and ensure that your lender is conducting its business in a legal and ethical manner.The majority of home loans in Cambodia are provided on flexible interest rates, which means that if your bank wants or needs to change your interest rate during the loan term, then they can. With that in mind, always choose a bank with a trusted reputation and a solid financial position.If you ask a question to your bank lender and they can’t answer you properly, your best bet is to keep looking. Find a bank who has a team of experienced lenders, not “jacks of all trades”.Most commercial banks are generally similar when it comes to upfront costs. Typically, you are expected to pay a loan approval fee (or processing fee), legal fees for the preparation and registration of your mortgage documents at the land titles office, a valuation fee and an insurance fee for basic fire cover over your property.The main point to look out for is hidden costs or clauses around upfront fees and paying off your loan early either partially or in full.Most banks will have a three percent early repayment fee if you make any extra payments or want to pay off your loan within three years, though some banks’ fees are higher and longer.Ask detailed questions regarding the mortgage’s terms and conditions: Ask about the application processing fee and if it is paid upfront or annually; how long it takes to obtain approval for the loan request; and how monthly repayments are to be made - is it by cash or automatically debited from the borrower’s account?Another loan feature worth considering is portability. This is necessary to learn about if you intend to increase your property portfolio by purchasing an additional property or selling your current home to buy another. This may involve a fee but it will be considerably less than the cost of establishing a new loan.Some banks can be inflexible even if you have sold your house and need to pay off your loan to release the title for property transfer ownership. Be careful of this one as it could mean a show stopper for your sale.Some banks insist that you provide at least three months’ notice if you wish to pay off your loan early and that this is often used as a tactic to reduce the instance of people refinancing to another bank. If this is the case, you need to know before you accept the loan.Stay up-to-date on the real estate industry in Cambodia and get real-time updates on real estate news as they happen. Download the Realestate.com.kh App now!Looking for reputable lenders in Cambodia? Let us help!Article by:

Cambodia’s most outstanding mixed-use development is soon to overlook the Mekong River with three 55-storey buildings, set for completion in 2020. The two towers of The Peak will be reserved for residential uses, while the third commercial tower will be the home of 20-storeys of the world-renown Shangri-La hotel, with 35-storeys of Grade A office space below it.With the upcoming ASEAN Economic Community, increasingly international corporations are entering the Cambodian market, and high grade office space and luxury residential units are rising in demand every month. Over 50% of registered companies in the Kingdom are majority foreign owned, and this trend is set to continue as Cambodia rises as an interconnected manufacturing, resource, agriculture and logistics hub for regional firms looking to expand, outsource or diversify. With an additional 5-storeys of prime retail space, The Peak also caters to Cambodia’s rising middle class, who are proving to have a taste for shopping and international brands.The developer is the renowned Oxley-WorldBridge Cambodia, a joint venture between Singaporean-based Oxley Holdings and WorldBridge Land Cambodia, which first launched in Cambodia in 2013. Oxley-Worldbridge’s The Peak is the second major residential development undertaken by the conglomerate.The Bridge, the joint venture’s first Phnom Penh project, marked a turning point for the entire Cambodian’s property sphere. With the release of The Bridge, the world took notice of the Cambodian market, the huge project bringing a new standard of construction and architectural flare to the capital.The Bridge, coming online in 2018, has now sold 96% of the projects 762 apartment units and 71% of 963 SoHo units. The Peak is perfectly located minutes walk from Phnom Penh’s largest AEON Mall, Nagaworld 1 & upcoming Nagaworld 2, and just 2 minutes drive to Business Convention Centres on Diamond Island. And of course, the 5-Star Shangri-La Hotel will be right next door.Don’t miss your chance to own a slice of Cambodian history; get in touch with The Peak’s friendly team today!

Within the confines of Cambodia, there lies a paradise known as Sihanoukville, the nation’s premier beach town. For years, this gem was overshadowed by the interest of tourists who only visited Cambodia for a few days to experience the temple complex and Angkor Wat in Siem Reap. However, with an eye for great investment opportunities, the developer Camhomes – part of the Singaporean Corporation, the HLH group – looked in the opposite direction toward the majestic views of the Sihanoukville coastline. This prompted the conceptualization and the progressing construction of D’Seaview, one of Cambodia’s grandest property investments. FIND OUT MORE ABOUT THIS OPPORTUNITY NOW!Standing tall with a 28-storey foundation, this project offers buyers a flexible finance scheme for purchase. With interest rates starting from only 9% per annum for up to 25 years, Maybank gives you the chance to own not only your own modern beach condo in Sihanoukville, but a chance to own part of Cambodia’s beautiful skyline. Not only that, but Maybank will allow you to loan up to 70% of the property purchasing price for local Cambodian and up to 50% for international buyers.  Even with its state of the art facilities and Singaporean-inspired design, Camhomes – through its unique partnership with Maybank – still allows third party guarantees and accepts soft title deeds with no loan approval fee, no renewal fee and no amendment fee.   A well-equipped gym and lap pool will be available for those who need their daily health fix; and D’Seaview will also provide 24-hour manned security for individuals and families alike. A 24-hour car park for residents and guests, with ample space, is ideal for those who planned to extend their hours into the morning. FIND OUT MORE ABOUT THIS OPPORTUNITY NOW! Peaceful gardens also await investors as they make their way through to their units, ensuring fresh and breathable air. Walk paths along the waterfront property will also provide them ease of access and an enjoyable sightseeing experience as they look upon the great architectural design of the buildings surrounding them. The modern and eco-friendly aesthetic and function of D’Seaview definitely takes into consideration the livability of this project - for each and every beach condo. That’s why it also has a playground, so that the whole family can enjoy. And when you don’t feel like going to the beach, you know that you always have the option of staying in the confines of Sihanoukville’s first ever mixed use development where it will always feel like home. Don’t worry though, the beach and views are not the only things that make this piece of Sihanoukville worthwhile. It also boasts of a convenient and strategic location where international and traditional Khmer dining is available just a few minutes away from your unit for when you decide that you’re just too tired to cook. And if some partying and retail therapy is your idea of fun, bars, discos, night markets, spas and shopping plazas are just a few minutes away.  So, you see, there’s no shortage of things to do in Cambodia, especially in the town of Sihanoukville. Whether you want to get a tan or immerse yourself in local culture, D’Seaview by Camhomes will get you that perfect balance. If you’re retiring, moving to work in Sihanoukville or just looking to start a new phase of your life, why not consider this as an investment property for a beautiful future that just so happens to come with a beautiful view as well?FIND OUT MORE ABOUT THIS OPPORTUNITY NOW!

Welcome to another real estate news recap, from Realestate.com.kh - your leader in property information! Keep up to date with market changes, and be an investor with FORESIGHT! The Peak by Oxley:May 3 was a special day for Singapore-listed property group Oxley Holdings and its Cambodian partner Worldbridge Land as it marked the first day of construction for The Peak which follows the success of its predecessing project, The Bridge. Among the people who attended the groundbreaking were Singapore’s ambassador to Cambodia Kevin Cheok and Cambodia’s senior minister for land management, urban planning and construction, Chea Sophara. Vice-chairman of Kerry Group George Yeo were also in attendance.Young Game Changers:Turnkey founder, Chim Sothea and architecture student Ly Suyi are making waves as they slowly make their mark in the Cambodian Architecture industry. Sothea hope to change the system by providing specialization in the field - as opposed to the old business practice of combining design and construction in one firm. Suyi, on the other hand has won four awards in drawing competitions; where she attributes the success to her grandmother teaching her how to draw so that she’d stop crying. The future of Cambodia’s design and construction field is definitely something to look forward to with the addition of young geniuses like these.NagaWorld Destruction:NagaWorld in Phnom Penh has had its fair share of controversies, including a suspension due to a question of legality. So, it’s nothing new when Minister Chea Sophara had ordered the destruction of an awning at NagaWorld this week which exceeded three meters into public property. The ministry hopes this would set an example for other developers who are planning to do the same. They are also hoping that this would instill respect for public land. So, if you’re planning to construct something beyond your boundary, you might just follow suit with NagaWorld and lose more than you bargained for.Cambodia’s Patent Law:Cambodia’s Ministry of Industry and Handicraft, together with the Japan Patent Office (JPO), signed an agreement yesterday that would streamline facilitating patent grants as a means of getting protection in Cambodia. The agreement aims to mutually strengthen and protect trademarks in intellectual property, industrial designs, unity models and patents to further expand both Japan’s and Cambodia’s economy. This is good news for the design and even the construction industry.Construction Investment Increase:The first quarter of the Kingdom’s investment in the construction sector in 2016 saw an increase of 267 per cent to $1.65 billion dollars from last year’s $448 million. This is due largely to Cambodia’s convenient investment laws. As evidence, deputy director general of the Ministry of Land Management, Lao Tip Seyha has confirmed that there are 473  construction projects that currently take up 3.7 million square meters of land.Tourism is Booming:Kong Sopheareak, director of the statistics and information department at the Ministry of Tourism, confirmed that along with the rise in investment in the first quarter of 2016, the tourist count had also increased by 2.6 per cent which totalled over 1.3 million. This means better opportunities for investments either from the tourists themselves or people who wish to take advantage of and create a business around the massive quantity of tourists.Valuers Congress:The 19th ASEAN Valuers Association Congress will be held in Cambodia on May 4 to May 7, 2016. This will be the first time the Kingdom will host the event and it hopes that with the visit of international movers and shakers who are part of AVA, it will conclude with an alignment to its theme which is One ASEAN, One Valuation Standard. Besides coming to terms with a single standard, this is also a great opportunity to showcase the wonderful investment opportunities Cambodia can share to the world.

A recent news release from the Cambodian Ministry of Tourism has announced that the Cambodian Government is currently preparing to issue three-year multiple visas, exclusively to Chinese and Korean tourists. Last year, 700,000 Chinese and 400,000 Korean tourists visited Cambodia last year, putting them in the top 10 foreign visitors. The initiative seeks to bolster the tourism sector, according to the report, one of Cambodia's keys to continued economic growth. Such a flexible and long term multiple issue Cambodia visa should encourage repeat travel and bring more tourists from China and Korea to Cambodia. But it may also bolster Chinese and Korean investment in the Cambodian real estate market... Travel is also opening Chinese eyes to real estate investment opportunities outside their borders; and Chinese outward tourism is the largest and fastest-growing tourism market in the world. Despite only 4 percent of Chinese nationals holding a passport, that 4 percent spend $200 billion overseas yearly. In 10 years, 12 percent of China’s population will hold passports, suggests China’s National Tourism Administration. “By 2020, it is predicted that 234 million outbound Chinese travellers will splurge $422 billion abroad,” says Charles Pitar, CEO of Juwai.com, China's leading international property portal website which introduces mainland Chinese buyers to international real estate investment opportunities. Stay tunes to Realestate.com.kh NEWS for more on this as it unfolds...

The first annual Real Estate Market & Outlook Conference 2016 (REMOC2016) was held this April at the Phnom Penh Hotel, with a host of the local and regional real estate industry leaders giving their outlooks on the state of the Cambodian real estate market.Realestate.com.kh caught up with Hoem Seiha, Director of Research, VTrust Appraisal Co., Ltd at REMOC2016 to get his 2 cents on the state of the current and future Cambodian property market prospects and, ultimately, Cambodian Property Market: The Big Picture!What topic will you speak to at REMOC2016, and why is it a key consideration for the Cambodian Real Estate sphere? At REMOC-2016 to be held on 1 April, I’m going to present to the audience about the macro perspectives on real estate industry: Cambodian Property Market: The Big Picture. Developers, policy makers and related key stakeholders need sound knowledge and in-depth insights into real estate sector at macro level so that they can together work to develop and, if any, curb with challenges in the sector. Construction and real estate sector has recently grown its importance to overall economy by contributing to creation of tens of thousands of jobs, pushing demand on mortgages to rise by 19 percent in 2014, and attracting US$ billions of real estate related FDIs that have spillover impacts on many other economic sectors. With my future outlook for this sector, even though real estate market has grown so quickly that it might pose potential risks and growth volatility, I foresee this sector will soon create a new economic engine alongside with the country’s key leading sectors such as garment, tourism and agriculture.

The AVA congress is now official underway!This marks the official Opening of the 19th ASEAN Valuers Association (AVA) Congress at the Sofitel Hotel Phnom Penh, Cambodia, May 5, 2016 - and the first ever congress to be held in the Kingdom of Cambodia. Realestate.com.kh is extremely proud to sponsor this year's event, and commends the huge efforts from the CVEA to create such a fantastic and well-attended event - which will have lasting benefits for the real estate and valuation industry in Cambodia. Well Done! This morning's opening ceremony included Opening Remarks By H.E. Dr. Aun Pornmoniroth, Senior Minister Minister of Economy and Finance. "Mr. Kim Heang, AVA President; Mrs. Dewi Sri Umi, AVA Secretary General; All AVA chief delegates, distinguished guests, Excellencies, Ladies and Gentlemen, Good Morning! On behalf of the Royal Government of Cambodia, it is my great pleasure and privilege to welcome you to the 19th ASEAN Valuers Association Congress on the theme “One ASEAN, One Valuation Standard.” and I would like to take this opportunity to congratulate Cambodia’s Valuers and Estate Agent Association (CVEA) for taking the chairmanship role to host this important congress, which brings together government officials, representatives from the private sector, professional institutions, research communities, academia and other related institutions to discuss the issues and matter relevant to the theme. Excellencies, Ladies and Gentlemen It has been almost 5 years since Cambodia hosted the 17th AVA pre-congress in 2011 in Siem Reap. Now, we can clearly see that all our AVA member countries have significantly developed their valuation profession; among those some members have even moved a step ahead towards international standards. The theme of today’s congress “One ASEAN, One Valuation Standard” reflects the vision of ASEAN Economic Community (AEC) “One Vision, One Identity, One Community”. As we all know, AEC is an emerging political and economic entity that is increasingly becoming an important force in global political and economic landscape, with a combined population of 600 million and total overall market value of around USD 2.6 trillion. The ASEAN with the GDP average growth rate for 2016 expected to reach 4.9%, is a new emerging market to attract global investment and play a role as economic engine to drive the Asia’s economy. With the AEC starting last year, the cooperation among ASEAN member countries has further strengthened significantly. Meanwhile, the regional trend toward increasing ASEAN integration in all aspects of business fields has driven the need for regional standards in every sector of business. Regarding the Appraisal and Valuation profession, it has led to the initiative of ASEAN valuation standards. The growth of cross-border investment and markets, including the real estate markets, needs common rules to level the playing field for market participants and thus contributes to insure transparency in business operations. However, establishing ASEAN valuation standards is not an easy task. It requires time and efforts to reach mutual agreement among member states given the different stage of development, and different legal and regulatory framework of each member. In this regards, I would like to bring your attention to some main challenges we are facing in real estate valuation, namely multiple systems, methodologies, lack of national standards, lack of formal education and training, etc. In addition, it is a matter of fact that data related to real estate market is scarce. Some values of properties are out of date due to irregular updating of market values, which greatly impacts many economic and financial transactions based on property value. In this aspect, the 19th AVA congress today is organized in a very timely manner. It provides a forum for all relevant stakeholders to discuss, compare and analyze the different valuation practices of ASEAN countries in order to identify the challenges of the Valuation Standard and practices and to come up with an improvement plan. Excellencies, Distinguished Delegates, Ladies and Gentlemen, While pressing the importance of strengthening the valuation standard, we also have to understand the need to enhance the capacity of valuers. Without professional valuers, we cannot evaluate assets of a company at fair market value. So far, Cambodia have 75 licensed professional valuers who are working in 62 valuation firms. Some well-known international property agencies and valuation firms, such as Knight Frank, CBRE, Century 21, Savills, and so on, are also expanding their business to Cambodia. Compared to other advanced countries, Cambodia’s real estate market is still at early stage of development, yet a fast growing market. In fact, Cambodia’s real estate sector is facing a lot of challenges in terms of legal, regulatory, and supervisory framework as well as inadequate human capacity. The rapid expansion of real estate projects requires independent and competent professional services in this sector. These professional services are not only fundamentally important for the development of Cambodia’s real estate industry, but also for all AVA members. The Royal Government of Cambodia is now working closely and pro-actively with the private sector to develop the real estate market. In particular, the MEF now is drafting our national valuation standards by taking into consideration regional practices and experiences. In the meantime, we are also preparing ourselves to adapt to ASEAN valuation standards as well as the International Valuation Standard Council (IVSC). We are also now working on updating our regulatory and supervisory framework to be in a better position to monitor and safeguard the real estate sector. In this effort, we are in need of Technical Assistance from the advanced AVA member countries and I trust that through the spirit of ASEAN cooperation, Cambodia will receive these necessary supports and assistance. Excellencies, Distinguished Delegates, Ladies and Gentlemen, Moreover, as a chair of this congress, I would like to encourage all advanced AVA member countries to extend their hands to assist less developed ASEAN members to develop competency and professionalism in the real estate sector. By doing so, I strongly believe we will see sustainable development of our regional real estate market which contributes to further enhance the Asean Economic Community. I strongly hope that the outcome of the 19th AVA Congress will bring closer collaboration, harmony and prosperity to all our AVA member countries. This also enables us to promote AVA as a regional community in the international arena. Before conclusion, I would like to thank the organizing committee for the excellent arrangement of this congress.  I would like to wish the 19th AVA Congress to be conducted successfully and fruitfully and wish Excellencies, AVA chief delegates, Distinguished Delegates, Ladies and Gentlemen happiness, prosperity, and success in all endeavours. For foreign guests, I hope you enjoy your stays in Phnom Penh and make your time to visit and explore the rich culture of Cambodia. May I now declare the opening of “the 19th AVA Congress”. Thank you." Realestate.com.kh is extremely proud to sponsor this year's event, and commends the huge efforts from the CVEA to create such a fantastic and well-attended event - which will have lasting benefits for the real estate and valuation industry in Cambodia. Well Done!Stay tunes for realestate.com.kh's full video coverage of the event on REALESTATE.COM.KHTV